HMRC clarifies approach to DGTs

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Advisers have been given more clarity on the issue of Discounted Gift Trusts, following the publication of a technical note from HM Revenue & Customs.

The five-page note confirms the Revenue has not made any fundamental changes to its overall approach to DGTs, although it is proposing to alter one element of the basis of valuation which is used to reflect current market valuations. HMRC says following recent press interest in the issue, it believes it is “an opportune moment to set out HMRC’s approach to DGTs and their interaction with Inheritance Tax (IHT) legislation”. The note focuses particularly on the valuation of lifetime transfers and the underlying valuation methodology, although it adds it has taken the opportunity to set ...

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